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NetEase Confirms AI as Core of Game Development, Denies Ban Rumors and Reports Strong Revenue

NetEase has firmly reaffirmed its stance on artificial intelligence, confirming that AI is now a core pillar of its game development strategy. The announcement came as part of the company’s latest quarterly earnings report, directly addressing and dismissing recent rumors claiming that NetEase had restricted or banned AI usage within its studios.

According to the company, those claims were inaccurate and did not reflect internal policy. Instead, NetEase emphasized that AI has already become fundamental across multiple stages of its production pipeline.

AI Integrated Across the Entire Development Cycle

In its official report, NetEase explained that AI is now used extensively throughout game development, from early concept creation to final quality assurance. This includes applications in art design, code structuring, animation production, and QA testing.

By leveraging AI tools, the company says it can deliver high quality content at greater scale and speed. NetEase has also begun implementing AI native features that enable more natural and responsive player interactions in several flagship titles, improving both immersion and development efficiency on high end PC platforms.

Executive Confidence in AI Driven Creativity

NetEase CEO William Ding stated that AI is no longer experimental technology for the company, but a foundational capability. He stressed that AI enables new forms of interaction and gameplay experiences that were previously impossible, while significantly improving production efficiency.

Importantly, the company reiterated that AI is intended to support creative talent rather than replace it. NetEase plans to continue building an ecosystem that empowers creators, while expanding responsible AI adoption in collaboration with global partners.

Strong Gaming Revenue Despite Market Pressure

Alongside its AI strategy, NetEase revealed solid financial performance. The company reported $3.9 billion USD in net revenue from its gaming and related services segment in the most recent quarter, representing a 3.0 percent year over year increase.

While the figure came in slightly below some analyst expectations, it still demonstrates the resilience of NetEase’s gaming portfolio. Long running titles such as Fantasy Westward Journey Online continue to perform strongly, while newer global releases like Where Winds Meet and Marvel Rivals are gaining momentum internationally.

Looking Ahead to 2026

NetEase outlined ambitious plans for 2026, positioning AI as a key driver in pushing beyond traditional game development limits. The company views AI not as a shortcut for cost reduction, but as a creative force multiplier that allows developers to break past technical and design constraints.

Heavy investment in research and development remains a priority, with NetEase confident that its long term AI strategy will generate value for both players and shareholders.

A Clear Message to the Industry

By publicly addressing the rumors and presenting concrete results, NetEase has sent a clear signal to the global gaming industry. AI is not a forbidden tool within the company, but a competitive advantage it intends to expand responsibly.

As more publishers debate the role of AI in creative work, NetEase’s approach highlights an emerging industry divide between restriction and acceleration. In this race, NetEase is making it clear that it plans to stay firmly in the lead.

 Origin: Insider-Gaming

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